QUEBEC CITY, July 15, 2024 /CNW/ - iA Financial Group (TSX: IAG) announces today the acquisition of two existing blocks of business from Prosperity Life Group (''Prosperity'').
The insurance blocks purchased by iA Financial Group are composed of Final Expense and Term Life products issued by Prosperity company S.USA Life Insurance Company, Inc. ("S.USA") in the United States, amounting to more than 115,000 policies and more than US$100 million in annual premiums. S.USA is an Arizona life insurance company authorized to write life, annuity, and health products in 47 states and the District of Columbia.
In addition, Prosperity's distribution network will be invited to sell iA Financial Group's products. Prosperity has a distribution network of about 15,000 sales agents contracted through Independent Marketing Organizations (IMOs). Approximately two-thirds of these agents and IMOs already have a contractual agreement with American-Amicable Life Insurance Company ("American-Amicable"), a subsidiary of iA Financial Group, to sell iA's products. The others will be invited to do the same.
This acquisition will be accretive from the first year, both on a core and reported basis. The transaction amount is not disclosed. The impact on iA Financial Group's solvency ratio will be around a one percentage point decrease.
The transaction is subject to ordinary closing conditions.
"This transaction will further increase iA's strong growth momentum and expand again its presence in the United States," stated Sean O'Brien, Executive Vice-President and Chief Growth Officer US Operations. "We look forward to welcoming new IMOs and agents and helping them continue to serve their customers well."
Forward-Looking Statements
This document may contain statements relating to strategies used by iA Financial Group or statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may", "will", "could", "should", "would", "suspect", "expect", "anticipate", "intend", "plan", "believe", "estimate" and "continue" (or the negative thereof), as well as words such as "objective", "goal", "guidance", "outlook" and "forecast", or other similar words or expressions. Such statements constitute forward-looking statements within the meaning of securities laws. In this document, forward-looking statements include, but are not limited to, information concerning the closing and the closing date of the transaction, future operating results and expected benefits of the transaction. These statements are not historical facts; they represent only expectations, estimates and projections regarding future events and are subject to change.
Although iA Financial Group believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. More specifically, the transaction is subject to the risk and uncertainty of whether and to what extent iA would realize the expected benefits of the transaction.
More specifically, the transaction is subject to the following risks and uncertainties: (i) that iA Financial Group and Prosperity may be unable to complete the proposed transaction because, among other reasons, conditions to the closing of the proposed transaction may not be satisfied or waived, including that a governmental authority may prohibit, delay or refuse to grant approval for the consummation of the transaction; (ii) uncertainty as to the timing of completion of the proposed transaction; (iii) the occurrence of any event, change or other circumstance that could give rise to the termination of the agreement; and (iv) whether and to what extent iA Financial Group would realize the expected benefits of the transaction.
Additional information about the material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the "Risk Management" section of the Management's Discussion and Analysis for 2023, the "Management of Risks Associated with Financial Instruments" note to the audited consolidated financial statements for the year ended December 31, 2023 and elsewhere in iA Financial Group's filings with the Canadian Securities Administrators, which are available for review at sedarplus.ca.
The forward-looking statements in this document reflect iA Financial Group's expectations as of the date of this document. iA Financial Group does not undertake to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law.
About iA Financial Group
iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States. Founded in 1892, it is an important Canadian public company and is listed on the Toronto Stock Exchange under the ticker symbols IAG (common shares) and IAF (preferred shares).
About Prosperity Life Group
Prosperity Life Group is an innovative insurance, reinsurance, and asset management company, which includes certain operating subsidiaries of Prosperity Group Holdings, LP in the US and Bermuda. Together, Prosperity's three US insurance subsidiaries have a foundation going back over 100 years. S.USA Life Insurance Company, Inc., is an Arizona insurance company authorized to do business in 47 states plus the District of Columbia.
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iA Financial Group is a business name and trademark of iA Financial Corporation Inc. and Industrial Alliance Insurance and Financial Services Inc.
SOURCE iA Financial Group
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